The use of toroidal cores that are wound with a winding and are supplied with an alternating current electrical signal to sense the velocity of rotation of a magnetizable exciter ring or wheel having teeth or similar projections in the vicinity of the core is known. A common disadvantage of the devices that are shown in the prior art, however, results from the fact that when there is any eccentricity or runout in the exciter ring or wheel, an additional undesired velocity modulation of the carrier signal occurs with the desired velocity modulation. The present invention is directed to a circuit which eliminates this undesirable runout modulation in a wheel velocity sensor of the type described in order to improve the reliability and accuracy of the device.